In a remarkable turn of events, the bankrupt cryptocurrency exchange FTX has announced that nearly all customers will receive full refunds. This development marks a significant milestone in the recovery process of the exchange, which collapsed in 2022, leaving thousands of users affected.
According to reports, FTX estimates that it owes its creditors around $11.2 billion. However, the exchange now claims to have between $14.5 billion and $16.4 billion available for distribution. This substantial increase in funds will enable FTX to repay some customers even more than their initial claims.
The collapse of FTX, led by its former CEO Sam Bankman-Fried, was a significant blow to the digital asset sector. Bankman-Fried was recently sentenced to over two decades in prison for his role in orchestrating one of the largest financial frauds in U.S. history.
The repayment plan, which is subject to approval by a bankruptcy court, aims to provide relief to FTX customers whose claims are valued at $50,000 or less. These customers will receive 118% of their initial claim, while 98% of all creditors are expected to benefit from the plan.
The funds for the repayment were generated through the sale of assets and venture investments held by both FTX and Alameda Research, the companies at the center of the collapse.
This development marks a significant step forward in the recovery process for FTX customers, who have been unable to access their funds since the exchange’s collapse. The repayment plan offers a glimmer of hope for those affected, and its approval by the bankruptcy court will bring a sense of closure to this chapter in the history of the digital asset sector.
